Before the credit bubble exploded in the summer of 2007 JP Morgan was considered on the Street to be something less than the beat up red headed stepson to that more glamorous house of Morgan, Morgan Stanley. Since then the other Morgan’s, J. P., fortunes have turned dramatically, to surpass Morgan Stanley and rival even Goldman Sachs. Jamie Dimon the CEO on board when the ship hit the iceberg, was even invited to dine at the white house, which was nixed for appearances sake only. None of this is by accident, it is payback. In the stick and carrot world of mafia banksterism where it is the yes men who get ahead, Jamie Dimon is at the front of the line. So, back in the summer of 2007 when a group of Bear Stearns insiders decided to take the shares of their company from $137.00 down into the pennies, while being themselves massively short all the way, they turned their greedy eyes to that lower house of Morgan managed by Dimon to clean up the blood and do away with the body.

On the surface JP Morgan has done well since then. The bank posted a record $5.56 billion for the fiscal first quarter of 2011, and it’s $17.4 billion net killing made it the Street’s most profitable bank last year. While everyone else bleeds Morgan gets filthy dirty rich. But the murder scene was toxic and they got poisoned in the sterilization process. It was unavoidable really, there were certain employees they had to hire, many millions subprime mortgages to swallow, and an infamous silver short position which landed squarely on their balance sheet with a thud.

To rid itself of the soon to implode mortgages Morgan used the ex-Stearns employees to defraud investors with the very mortgage securities that they created and sold while working at Bear Stearns. After misrepresenting the loans and selling them to insurers and other big banks JP Morgan decided supercharge it’s profits by shorting the banks that they had just poisoned with the waste mater of the dead and buried Bear Stearns.

According to emails and internal audits, JP Morgan knew about this fraud since early spring in 2008, but deliberately hid it from the public eye through legal maneuvering.

Last week a lawsuit filled in 2008 by mortgage insurer Ambac Assurance Corp against Bear Stearns and JP Morgan was unsealed and is now in the public domain.

The lawsuit that contains supporting emails sent by Bear Stearns mortgage securities dealers, going back as far as 2005, clearly highlight that Bear Stearns traders were constantly telling their superiors that Bear Stearns was selling investors like Ambac a “Sack of Shit”

It seems that the Bear Stearns superiors knew that all of the mortgages in these mortgage back securities were fraudulent, bogus and likely to default, so they know that they were a “Sack of Shit” and not worth the paper they were being written on.

After funnelling these misrepresented loans of to Ambac’s insurance they then, according to the lawsuit, implemented a trading strategy to profit from Ambac’s potential demise by “shorting” banks with large exposure to Ambac-insured securities.

Again all these trading shorting strategies are mentioned in the email correspondence sent and received by the Bear Stearns superiors, effectively pointing out that Bear Stearns implemented these strategies immediately after they had sold the fraudulent mortgage securities to investors and big banks.

Rather than implement a trading strategy in order to reduce it’s short position in silver Dimon and the brain thrust at the bank implemented a trading fraud through which they believed that they could escape having to cover.

On March 25th, 2010, the CFTC held a hearing on position limits in precious metals. Bill Murphy of GATA (see NIA’s video page for an interview we conducted with Mr. Murphy on Thursday) was allowed to speak (within a five-minute time constraint). Right at the beginning of Murphy’s speech, there was a technical failure of the live television broadcast, which was mysteriously fixed as soon as he was done speaking. This did not stop Murphy, who was brave enough to present the evidence of Andrew Maguire, a former Goldman Sachs precious metals trader who on February 3rd became a whistleblower when he wrote to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, giving him the “heads up” for a “manipulative event” signaled for February 5th. Maguire described to the CFTC in February 3rd emails, exactly what would happen on February 5th (which did occur exactly like predicted), yet the CFTC refused to take any action against JP Morgan or the other conspirators.

What became of Murphy and Maguire? Immediately following the testimony Murphy was beat up and Maguire was run down.

In the weeks that followed, Murphy’s car was stolen, his web site was hacked, and he was punched with brass knuckles and knocked out cold less than two blocks from his house. As for Maguire, a couple of days after the CFTC hearings, he and his wife were involved in a bizarre hit-and-run car accident in London where a second car coming out of a side street struck their vehicle. The hit-and-run suspect then hit two more vehicles when he desperately attempted to flee, which resulted in a police chase with helicopters. The suspect was nabbed, yet surprisingly, his name was never released and it was never made known if charges were filed.

So while the Greenwich YMCA flirts with foreclosure and scrambles to raise $6 million in their hedge-fund mecca — to which even a former Y director says, “They might be rich here, but they’re not stupid. It’s like throwing money in a black hole.” — Bloomberg News reports that “JP Morgan Chase, which now holds about $13 million of the Y’s bonds, has filed suit against the Greenwich YMCA and the town of Greenwich, asking a Superior Court judge to make the Y’s property available for other uses.”

Greenwich Time also reports that Greenwich Hospital is in talks to take over the Y’s new pool, and maybe the entire facility. And the Greenwich Y’s most recent president and CEO has followed her predecessor’s lead and abruptly resigned in January. Their story will probably not end well.

For any errors that were made, “we deeply apologize,” Dimon, 55, said today at the shareholders’ meeting in a 2- million-square-foot office building in Columbus, Ohio. “We are doing everything we can to keep people in their homes that should stay in their homes.” Dimon said he especially regretted the bank’s mistakes in foreclosing on active-duty military personnel and for fumbling paperwork on other home seizures.

Probably the only regret was being caught. For even as Dimon’s Mea Culpa rings hallow from the loud speakers his Morgan continues to issue the same strain of financial virus that infected the global economy, this time appropriately named the Death Derivative.

Schemes are increasingly transferring risk to insurance companies, driven by merger and acquisition activity, a growing number of closures and part-closures of defined benefit pension schemes, and concerns over longevity risk. A March report by Hymans Robertson has shown that UK pension buyouts, in which an entire scheme is passed to a specialist insurer, are becoming more and more prevalent.

Look for Morgan to short the life insurers next.

As formerly well to do move into the streets and unemployment lines, they do so victims to some degree or other, of the predatory financial tactics engaged in by the most pernicious usurers in human history and even in the bread lines they are fed on by JP Morgan.

J P Morgan has a food stamp monopoly in 26 states and the District of Columbia. Since Morgan gets a cut of each transaction the bank only stands to profit from hungry Americans. Given that 43 million hungry Americans use food stamps all those little cuts add up to quite a gouge. And what about the future of food stamp users in the country? Well if a high percentage of food stamp usage is good for Morgan you already know the answer to that. In fact in the video Morgan executive Christopher Paton ghoulishly admits that this is “a very important business to JP Morgan” and that it is doing very well.

The anti-genocide proposal was prompted by Chase’s investment in the PetroChina oil company, which human rights advocates have long accused of financing the genocide in Darfur because its parent company is a substantial oil producer in Sudan.

“There is no compelling justification for these investments,” said William Rosenfeld, founder of Investors Against Genocide, at today’s meeting. “Chairman Dimon says, ‘We have always been committed to being good corporate citizens.’ So why does the company’s board oppose this proposal?”